The market for silica is expected to register a CAGR of about 5% during the forecast period. The major factor driving the market is the increasing demand from the building and construction industry. On the flip side, occupational hazards associated with silica and unfavorable conditions arising due to the COVID-19 outbreak are hindering the growth of the market.
- The development of mesoporous silica particles (MSP) for use in nanotechnology and a new porous hybrid material derived from silica fume and alginate for sustainable pollutant reduction is expected to offer various opportunities for the growth of the market.
- Building and construction and glass manufacturing are likely to be the dominant segments, in terms of demand, over the forecast period.
- Asia-Pacific dominates the market across the world, with the largest consumption from countries, such as China and India.
Key Market Trends
Increasing Demand from Building and Construction Industry Segment
- The building and construction industry is anticipated to register a CAGR of more than 6% during the forecast period. Sand, concrete, and cement derived from silica are intensively used in the building and construction industry.
- Silica-derived chemicals are used in the manufacture of construction chemicals. The construction chemicals market is expected to register a CAGR of about 6% during the forecast period, due to the increasing urbanization, growing construction activities worldwide, and increasing investments in the infrastructure sector.
- More than two-thirds of the overall flat glass production is used in construction, and the global demand for fabricated flat glass is increasing at a fast pace., with the growth rate estimated to be at approximately 7% during the forecast period.
- All the above-mentioned factors ensure regular demand for silica from the building and construction industry segment, worldwide.
Asia-Pacific to Dominate the Market
- Asia-Pacific is expected to be the dominant market in silica consumption, as China and India dominate the market for the end-user industries, such as building and construction, electronics, and glass manufacturing.
- China is the largest construction market in the world. As the government plans to focus on improving the infrastructure in small- and medium-sized cities, the country's construction industry is estimated to maintain a continuous growth of around 5% annually.
- The consumer electronics market in Asia-Pacific is expected to register a CAGR of 5% during the forecast period, ensuring regular demand for silica, since it is used in semiconductor and optical fibers.
- The industrial and technical glass manufacturing industry in China developed rapidly, with the revenue rising by 10% annually, to about USD 49 billion, in 2019. Silica is the main component required for manufacturing glass.
- Thus, rising demand from the aforementioned end-user industries is expected to drive the growth of the silica market in Asia-Pacific.
The silica market is fragmented with the presence of both international and domestic players. The major companies in the market studied include Cabot Corporation, Evonik Industries AG, Mitsubishi Chemical Corporation, Nouryon, and Wacker Chemie AG.
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